Payment frequency- Inside & Outside IR35

[hobnob]

The end client is a large company with a UK base, but it sounds like the liability would sit with the agency here, so I’d need to check if Jefferson Frank meet any of those requirements £xM amount or >50 employees, if not the liability sits with me?

No, you've misunderstood. There are 2 scenarios here:

1. End client is large, therefore they're responsible for the SDS. If HMRC challenge it later, the fee payer (recruitment agency) is responsible for repaying tax, and they'll probably try to pass that on to you via a clawback clause in the contract.

2. End client is small, therefore you're responsible for the SDS. If HMRC challenge it later, you are responsible for repaying tax.

Either way, the size of the agency (Jefferson Frank in your case) is irrelevant. It's only the size of the end client that matters.

[eek]

What Hobnob says but equally frank group is large enough to be a large firm

[pickod]

In short

I have an outside contract , direct with the client , rate / hours etc negotiated with client.
Invoice frequency Weekly
Payment within 30 Days

[PerfectStorm]

I'd take the outside role.

Once you're a couple of months in you'll stop caring about payment terms - the notion of 'payday' rather dissapears as it'll be coming in faster than you can spend it.

[ensignia]

I'd take the outside role.

Once you're a couple of months in you'll stop caring about payment terms - the notion of 'payday' rather dissapears as it'll be coming in faster than you can spend it.

I've never really seen the issue with payment terms or the preciousness of some contractors in wanting their pay almost immediately.

I remember when I was at JPM in the days when PSCs were allowed, and I'd often not submit timesheets for weeks on end so when I did get paid it would be random and large amounts. Felt like a millionaire then

[PerfectStorm]

I've never really seen the issue with payment terms or the preciousness of some contractors in wanting their pay almost immediately.

Well, I can remember being very interested in it at the start, coming from, as I was, a situation where I was living very much month to month, and where not getting paid on time at the end of the month meant ruin within a week... I also pulled out max dividends per month, at least up until the higher rate.

I remember when I was at JPM in the days when PSCs were allowed, and I'd often not submit timesheets for weeks on end so when I did get paid it would be random and large amounts. Felt like a millionaire then

You certainly can do that, but you'd be kicking yourself if the agency ever goes out of business. Your inheritors (if you have any) may not thank you either

[gables]

I think nearly all of us can say that. There weren't any inside gigs in the old days.

Is that strictly true ;-) or did you mean most didn't declare it? Unless you mean the good old days before April 2000 :-)

[eek]

Is that strictly true ;-) or did you mean most didn't declare it? Unless you mean the good old days before April 2000 :-)

There were no inside IR35 in the sense of the new Chapter 10 rules where someone other than the contractor makes the final decision.

[ensignia]

Well, I can remember being very interested in it at the start, coming from, as I was, a situation where I was living very much month to month, and where not getting paid on time at the end of the month meant ruin within a week... I also pulled out max dividends per month, at least up until the higher rate.

It's usually the older career contractors who are most uppity about getting their hands on their money asap. Could understand why someone just starting out might be different though. Last few contracts I've had have paid within 7 days of first invoice being approved so not long to wait at all.

You certainly can do that, but you'd be kicking yourself if the agency ever goes out of business. Your inheritors (if you have any) may not thank you either

JPM > Resource Solutions > My Ltd = slim to nil chance of not getting paid. They were excellent payers - invoice by Tuesday morning and in your account for the Friday, but I did enjoy dragging it out for as long as possible. Largest invoice I got paid was 42k, felt like a footballer! Irregular payments might point to more of a b2b relationship as well re IR35.

[eek]

Irregular payments might point to more of a b2b relationship as well re IR35.

Um, no that would be most clutching of clutching of straws